News and Press Releases

Bath Man pleaded guilty to tax charges

FOR IMMEDIATE RELEASE
Nov. 26, 2012

John W. Hufgard pleaded guilty today evading nearly $400,000 in taxes, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

Hufgard, 59, of Bath, Ohio, pleaded guilty to three counts of income tax evasion for the 2007, 2008 and 2009 income tax years.

He was charged with these counts on October 24, 2012.

Hufgard was the sole proprietor of Universal Service and Repair, Limited. Hufgard sold manufacturing racks to metal scrap dealers, and failed to report the proceeds on his federal income tax returns. Hufgard concealed his scheme by selling racks for cash, by depositing business income into his personal account, business income diverted into his personal account, and falsely recording business income as short term loans from himself.

He also tried to conceal his scheme by moving large amounts of scrapped metal racks, long distances, to scrap dealers who were willing to pay him in cash rather than using unknown dealers who might pay by check.

Through this scheme, Hufgard evaded approximately $397,659 in federal taxes.

A sentence will be determined by the court after review of factors unique to this case, including the defendant's prior criminal record, if any, the defendant's role in the offenses, and the characteristics of the violations. In all cases the sentence will not exceed the statutory maximum and in most cases they will be less than the maximum. The maximum statutory sentence is this case is five years imprisonments, three years of supervised release, and a fine of up to $250,000 or twice the gross gain or loss.

This case is being prosecuted by Special Assistant United States Attorney Perry D. Mastrocola, following an investigation by the Internal Revenue Service Criminal Investigation Division.

 

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